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Subject: Who governs HOA's in Maryland
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Author Messages
ParkP
(Maryland)

Posts:31


07/06/2008 9:34 PM  
We were notified on the web June 9, of new management company hired they also had contractor do brick work these happen to be relate. The management is daughter to treasure.
our bylaws do not say they can't but many association membersare upset with conflict of interest.
GlenL
(Ohio)

Posts:5491


07/07/2008 12:22 AM  
Park you can find the applicable state laws for HOA's by using the link at the left for Community Associations Network go to State info and click on Maryland. As to who governs the HOA; if you've transitioned from Declarant control then the Board of Trustee's does. As a homeowner you and your neighbors have the right to question them on what you seem to feel is a conflict of interest.

Studies show that 5 out of 4 people have problems with fractions
JeanneK3
(Maryland)

Posts:562


07/07/2008 6:31 AM  
Park:
If your Board is violating its own By-Laws, and if you live in Montgomery County, you can file a complaint with the Montgomery County Commission on Common Ownership Communities. If you don't live there, you and your friends might need the help of an attorney. E-mail Maryland Homeowners' Association for a list homeowner-friendly attorneys (www.marylandhomeownersassociation.info. But before you do any of that, send your Board a letter outlining your concerns. There might be a simple explanation.
SusanW1
(Michigan)

Posts:5202


07/07/2008 12:32 PM  
How do you figure these all constiture a "conflict of interest"?

The management hired a company - according to what rules (bids, etc.)?

The daughter of the treasurer owns a company hired by the Board. Was there a vote on this?

You have not proved a conflict of interest (which is defined as a voting member benefiting monetarily or in order to have an advantage over all other residents)

ParkP
(Maryland)

Posts:31


07/07/2008 8:12 PM  
This company has never managed property before and the treasures spouse had already spoke of another association member is behind in dues. Association members have contacted this company and have been told, she did not know the answer.
KirkW1
(Texas)

Posts:1665


07/08/2008 5:39 AM  
As for the conflict of interest, if a BOD member participated in discussion (other then to answer questions) or voted on the change to a company which his or her daughter has a financial interest, then there is a conflict of interest. Conflicts arise when there is any direct or indirect gain. The BOD member should recuse when there is even a hint of a conflict.
ParkP
(Maryland)

Posts:31


07/09/2008 9:19 AM  
We are kept in the dark about how things were voted.
EllenS1
(Florida)

Posts:1148


07/10/2008 5:39 PM  
ParkP,

Insist on seeing the minutes where this vote was taken. You have the right to see the minutes.
MaryA1


Posts:0


07/12/2008 1:11 PM  
Park,

Have you researched MD state law regarding conflict of interest for HOA board members or nonprofit corp board members?

In AZ a conflict of interest occurs if the board member stands to benefit from a transaction made by the board. However, if the member with the conflict states their conflict and does not vote on the issue, then there is no problem. It appears to me you are not quite certain of all the details involving this item of business. As Ellen suggested, you should obtain a copy of the minutes to find out exactly what transpired. Then, coupled with your research regarding conflict of interest laws in MD, you should know exactly if, in fact, a conflict of interest does apply.
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